AN ACT TO AMEND SECTIONS 4302 AND 4305, TITLE 30, DELAWARE CODE, BY EXCLUDING MANUFACTURING EQUIPMENT ON LEVERAGED LEASES GUARANTEED BY THE ECONOMIC DEVELOPMENT ADMINISTRATION FROM THE LEASE TAX.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. §4302 of Title 30, Delaware Code, is amended by striking the existing section and inserting in lieu thereof a new 54302 to read as follows:

"There is imposed by this Section on every lessee a use tax, for the use within this State, under a lease of tangible personal property (other than household furniture, household fixtures or household furnishings, hospital equipment and any and all medical and remedial equipment, aids and devices leased by or to elderly, ill, injured or handicapped persons for their own use and manufacturing equipment under leveraged leases in which rental payments are guaranteed, in whole or in part, by the Economic Development Administration of the United States Department of Commerce pursuant to Public Law 89-136, as amended) equal to 2% of the rent under such lease."

Section 2. §4305 (b) of Title 30, Delaware Code, is amended by striking the entire section and inserting in lieu thereof a new §4305 (b) to read as follows:

"In addition to the license fee required by subsection (a) of this section, every such lessor shall pay an annual license tax in quarterly installments at the rate of 3/10 of 1% of the lease rental payments received, except lease rental payments on manufacturing equipment under leveraged leases on which rental payments are guaranteed, in whole or in part, by the Economic Development Administration of the United States Department of Commerce pursuant to Public Law 89-136, as amended. Returns shall be filed quarterly by each lessor on the dates specified in subsection (b) of §4307 of this Title."